Mexico’s gas output resurgent in the long term

By Abhishek Kumar 17 November 2016
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Mexico's reliance on pipeline gas imports from the US is set to rise until 2018. (Gazprom) Mexico's reliance on pipeline gas imports from the US is set to rise until 2018. (Gazprom)

Mexico’s gas sector is undergoing structural changes that the government hopes will boost domestic gas output in the medium-to-long term. Progress on opening up the upstream oil and gas sector to IOCs is going well, and is expected to start yielding results towards the end of the decade. The government has ambitious plans to make Mexico self-sufficient in gas production in the longer term and to reduce its dependence on pipeline gas, which is currently displacing LNG from the country.

Mexico’s gas sector is no stranger to changes and is well equipped to meet this latest challenge. Declining domestic gas production forced the country to build its first LNG terminal at Altamira and become an LNG importer in 2006. Since then, the country has constructed two more LNG terminals.

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